UPDATE 1-All G20 members have role in softening volatility-Canada official

OTTAWA Feb 17 (Reuters) - Advanced economies must explain
their monetary policy approach clearly to the rest of the world
and some emerging economies need to strengthen policies in order
to soften the financial market volatility during this
unprecedented period of transition, a senior Canadian finance
official said on Monday.

Briefing reporters about a Feb. 22-23 meeting of finance
ministers and central bank chiefs from the Group of 20 advanced
and emerging economies in Sydney, Australia, the official, who
declined to be named, said the G20 needed to take a step back
and take a broader view than just the U.S. Federal Reserve's
tapering of its bond-purchasing program and the spillover
effects.

Following the Great Recession, the global economy is going
through a Great Transition, he said, and therefore it is not
surprising that there be significant currency moves and other
volatility. All major economies need to make big adjustments, he
said, adding that mitigating the volatility requires action on
everyone's part.

Without mentioning the United States, he said monetary
policy in advanced economies must be well-communicated to the
rest of the world and calibrated to the pace of the recovery, a
message the G20 gave last year and which Canada expects to be
repeated in Australia.

At the same time, he said the conclusion of the recent
emerging market rout was that some countries with weak policy
frameworks must strengthen their policies.

Again, he did not name specific countries, nor would he say
whether the G20's final communique would contain language along
these lines.

Bond, currency and stock markets in developing countries
have swung wildly in recent months as the Fed scales back its
quantitative easing program and concerns about a rapid slowdown
in China spooked investors.
Continued...